Low precipitation can significantly damage property or impact business operations, resulting in loss of revenue. Our low precipitation coverage provides tailored protection against revenue losses when precipitation is less than a pre-selected trigger.


Contiguous U.S.

Who can benefit
  • Hydropower generation companies
  • Agricultural businesses, such as farms and vineyards
  • Water supply companies
  • Supply chain and Logistics companies
  • Landscaping and irrigation businesses

How it works

Using CPC or PRISM precipitation data, a coverage trigger can be set based on a business’s needs and risk exposure. If cumulative rainfall falls below the threshold during the policy period, the insured automatically becomes eligible for a loss payment, helping to cover costs and maintain profitability despite challenges from low precipitation.

An example structure

For informational purposes only. Actual coverage may vary by carrier.

Water supply companies that rely on locally sourced rivers and reservoirs to produce drinking water for the surrounding communities are at risk of prolonged drought. When reservoir levels fall due to lack of rainfall, private water supply companies have to pump in water from other sources which is an additional cost for the company. To protect against this potential added cost, private or public water supply companies can purchase parametric insurance that protects against low rainfall.

Contract structure
Water Supply Company
Philadelphia, Pennsylvania
Low rainfall
full limit recovery
1 inch
Payouts Based on
Cumulative precipitation
payout table example
x% for Cat 3 within 30 miles
y% for Cat 4 within 20 miles
z% for Cat 5 within 10 miles
Daily threshold
limit paid at
Payment per inch
time period
6/1 - 9/1
Coverage trigger
4 inches
data source
National Hurricane Center
Payout profile

Next steps

If you're an agent, you can request a premium indication
Get started
If you have a question?
Contact us